MIRA INFORM REPORT
|
Report Date : |
16.04.2007 |
IDENTIFICATION DETAILS
|
Name : |
ESTER INDUSTRIES LIMITED |
|
|
|
|
Formerly Known
As : |
Ester India Limited |
|
|
|
|
Registered
Office : |
Sohan Nagar, P.O. Charubeta, Khatima – 262 308, Dist. Udhamsingh
Nagar, Uttaranchal |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2006 |
|
|
|
|
Date of
Incorporation : |
04.02.1985 |
|
|
|
|
Com. Reg. No.: |
20-15063 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L24111UP1985PLC015063 |
|
|
|
|
TAN No.: [Tax Deduction
& Collection Account No.] |
DELE02870A |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACE0119K |
|
|
|
|
Legal Form : |
A Public Limited Liability Company.
The company’s shares are listed on the Stock Exchanges |
|
|
|
|
Line of Business
: |
Manufacture of Polyester Chips, Polyester Film, Polyester / PBT,
Filament Yarn and Methanol. |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
Maximum Credit
Limit : |
USD 4000000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment
Behaviour : |
Slow and Delayed |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an old established company having moderate track. Directors
are reported as experienced and respectable businessmen. Their trade
relations are reported as fair. The company’s profitability is under server
pressure. Payments are reported as slow and delayed. The company can be considered for small business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
Sohan Nagar, P.O. Charubeta, Khatima – 262 308, Dist. Udhamsingh
Nagar, Uttaranchal, INDIA |
|
Tel. No.: |
91-5943-250153-57 |
|
Fax No.: |
91-5943-55158 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
DLF Building No. 8, Tower – A, II Floor, DLF City, Phase – II, Sector
– 25, Gurgaon – 122022, Haryana |
|
Tel. No.: |
91-124-4572100 – 30 |
|
Fax No.: |
91-124-4572199/ 4376426 |
|
E-Mail : |
|
|
|
|
|
OVERSEAS OFFICE |
ESTER
INTERNATIONAL (USA) LIMITED. C/o. 350 5th Avenue Suite E-mail-info@esterindustries.com |
|
|
|
|
Branches : |
Mumbai 204, Vishwananak Appartments, 2nd
Floor Bangalore 3008 A, Gowri
Apartment, RMV Ext. 2nd Stage, |
DIRECTORS
|
Name : |
Mr. A. K. Singhania |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. M. R. Hosangady |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. H. S. Majumder |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V. B. Haribhakti |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A. P. Sarwan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A. K. Newatia |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Palem Srikant Reddy |
|
Designation : |
Director |
|
|
|
|
Name : |
D K Dosi |
|
Designation : |
Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. S. K. Jain |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Indian |
|
|
|
Individuals/ Hindu Undivided Family |
5557770 |
10.01 |
|
Bodies Corporate |
1427100 |
2.57 |
|
Foreign |
|
|
|
Bodies Corporate |
30952800 |
55.77 |
|
Public shareholding |
|
|
|
Institutions |
|
|
|
Mutual Funds/ UTI |
34400 |
0.06 |
|
Financial Institutions / Banks |
763200 |
1.38 |
|
Insurance Companies |
246395 |
0.44 |
|
Foreign Institutional Investors |
23100 |
0.04 |
|
Non-institutions |
|
|
|
Bodies Corporate |
2114052 |
3.81 |
|
Individuals |
|
|
|
Individuals -i. Individual shareholders holding nominal share capital up to Rs. 0.100 Millions |
10358472 |
18.66 |
|
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Millions. |
3573501 |
6.44 |
|
Any Other |
|
|
|
NRI |
451610 |
0.81 |
|
Total |
55502400 |
52802213 |
BUSINESS DETAILS
|
Line of Business
: |
Manufacture of Polyester Chips, Polyester Film, Polyester / PBT,
Filament Yarn and Methanol. |
||||||||
|
|
|
||||||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees
: |
1500 |
|
|
|
|
Bankers : |
v Bank of India v Bank of Baroda v Union Bank of
India v Canara Bank v State Bank of
Bikaner & Jaipur |
|
|
|
|
Facilities : |
-- |
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
Statutory
Auditors S. R. Batliboi and Associates Chartered Accountants New Delhi Concurrent
Auditors T. R. Chadha & Company Chartered Accountants New Delhi |
|
|
|
|
Subsidiaries : |
v Ester
International (USA) Limited v Ester Europe
GmbH |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
300,000 |
10% Cumulative Convertible Preference Shares |
Rs. 100/- each |
Rs. 30.000 millions |
|
4,000,000 |
10% Redeemable Cumulative Preference Shares |
Rs. 100/- each |
Rs. 400.000
millions |
|
75,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 750.000 millions |
|
|
Total |
|
Rs.
1180.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30550000 |
Equity Shares |
Rs. 10/- each |
Rs. 305.500
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
305.500 |
305.500 |
305.500 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
901.400 |
1127.500 |
1129.800 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1206.900 |
1433.000 |
1435.300 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
626.800 |
628.400 |
552.000 |
|
|
2] Unsecured Loans |
185.100 |
61.500 |
62.300 |
|
|
TOTAL BORROWING |
811.900 |
689.900 |
614.300 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2018.800 |
2122.900 |
2049.600 |
|
|
|
|
|
|
|
|
APPLICATION OF
FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net
Block] |
1434.800 |
1495.500 |
1611.300 |
|
|
Capital
work-in-progress |
34.400 |
10.200 |
26.400 |
|
|
|
|
|
|
|
|
INVESTMENT |
4.300 |
25.000 |
56.600 |
|
|
DEFERREX TAX
ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS,
LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
287.700
|
362.900 |
265.000 |
|
|
Sundry Debtors |
281.500
|
338.900 |
366.300 |
|
|
Cash & Bank
Balances |
70.000
|
81.400 |
88.100 |
|
|
Other Current
Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans &
Advances |
429.300
|
341.000 |
490.600 |
|
Total Current Assets |
1068.500
|
1124.200 |
1210.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current
Liabilities |
536.400
|
473.300 |
809.000 |
|
|
Provisions |
30.700
|
64.100 |
56.400 |
|
Total Current Liabilities |
567.100
|
537.400 |
865.400 |
|
|
Net
Current Assets |
501.400
|
586.800 |
344.600 |
|
|
|
|
|
|
|
|
MISCELLANEOUS
EXPENSES |
43.900 |
5.400 |
10.700 |
|
|
|
|
|
|
|
|
TOTAL |
2018.800 |
2122.900 |
2049.600 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
2743.300 |
3009.000 |
2966.700 |
|
|
|
|
|
|
Profit/(Loss) Before Tax |
(250.000) |
137.400 |
448.800 |
|
Provision for Taxation |
81.900 |
48.300 |
67.900 |
|
Profit/(Loss) After Tax |
(168.100) |
89.100 |
380.900 |
|
|
|
|
|
|
Export Value |
NA |
966.381 |
1078.683 |
|
|
|
|
|
|
Total Expenditure |
2741.200 |
3005.900 |
2961.800 |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2006 (1ST
Quarter) |
30.09.2006 (2nd
Quarter) |
31.12.2006 (3rd
Quarter) |
|
Sales Turnover |
600.500 |
748.100 |
670.900 |
|
Other Income |
2.400 |
2.600 |
2.500 |
|
Total Income |
602.900 |
750.700 |
673.400 |
|
Total Expenditure |
598.500 |
695.700 |
667.900 |
|
Operating Profit |
4.400 |
55.000 |
5.500 |
|
Interest |
32.800 |
34.400 |
32.800 |
|
Gross Profit |
(28.400) |
20.600 |
(27.300) |
|
Depreciation |
41.500 |
44.200 |
39.800 |
|
Tax |
0.800 |
0.300 |
1.500 |
|
Reported PAT |
(67.700) |
(23.900) |
(68.600) |
200606 Quarter 1
Expenditure Includes (Increase) / Decrease in Stock in Trade
Rs. 6.894 million Consumption of Raw Materials Rs. 414.235 million Power and
Fuel Rs 60.189 million Staff Cost Rs. 32.689 million Other Expenditure Rs.
84.566 million Tax Includes Provision for Deferred Tax Charge / (Credit) Rs.
(2.968) million Fringe Benefit Tax Rs. 0.750 million EPS is Basic Status of
Investor Complaints for the quarter ended 30.06.2006 Complaints Pending at the
beginning of the quarter Nil Complaints Received during the quarter 09
Complaints disposed off during the quarter 09 Complaints unresolved at the end
of the quarter Nil 1. Previous year / quarter figures have been regrouped /
recast wherever necessary to make them comparable. 2. The results for the
quarter ended 30.06.2006 have been subjected to limited review by the Auditors
and were taken on record at the Board of Directors meeting held on 31.07.2006.
200609 Quarter 2
Notes
Expenditure Includes
(Increase) / Decrease in Stock in Trade Rs (35.440)million Consumption of Raw
Materials Rs 537.847 million Power & Fuel Rs 58.285 million Staff Cost Rs
36.046 million Other Expenditure Rs 99.002 million Tax Includes Provision for
Fringe Benefit Tax EPS is Basic Status of Investor Complaints for the quarter
ended September 30, 2006 Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter 10 Complaints disposed off during the
quarter 10 Complaints unresolved at the end of the quarter Nil 1. Previous year
/ quarter figures have been regrouped / recast wherever necessary to make them
comparable. 2. The results for the quarter ended September 30, 2006 have been
subjected to limited review by the Auditors and were taken on record at the
Board of Directors meeting held on October 27, 2006. 3. The company has not
recognised the liability of employee benefit strictly as per the revised As 15
employee benefits applicable from April 01, 2006. However the management feels
that the impact of the same on the current quarter and half year results would
not be material and the same will be considered at the year end.
200612 Quarter 3
Notes
Expenditure Includes
(Increase) / Decrease in Stock in Trade Rs 32.751 million Consumption of Raw
Materials Rs 451.973 million Power & Fuel Rs 48.489 million Staff Cost Rs
36.696 million Other Expenditure Rs 98.026 million Tax Includes Provision for
Fringe Benefit Tax EPS is Basic Status of Investor Complaints for the quarter
ended December 31, 2006 Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter 06 Complaints disposed off during the
quarter 06 Complaints unresolved at the end of the quarter Nil 1.The Company is
following AS-15 Retirement Benefits issued by ICAI in 1995. In December 2006,
Central Government has notified the Companies (Accounting Standards) Rules
2006. Accordingly the revised AS-15 Employees Benefits would be applicable for
accounting periods commencing on or after December 7, 2006. Company would be
recognising the liability of employee benefits strictly as per revised AS-15 -
Employee Benefits from the applicable accounting year. 2. Previous year /
quarter figures have been regrouped / recast wherever necessary to make them
comparable. 3. The results for the quarter ended December 31, 2006 have been
subjected to limited review by the Auditors and were taken on record at the
Board of Directors meeting held on January 29, 2007.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
0.61 |
0.51 |
0.76 |
|
Long Term Debt Equity Ratio |
0.39 |
0.37 |
0.55 |
|
Current Ratio |
1.32 |
1.33 |
1.08 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
0.75 |
0.78 |
0.81 |
|
Inventory |
8.45 |
9.23 |
9.89 |
|
Debtors |
8.86 |
8.22 |
8.76 |
|
Interest Cover Ratio |
(1.98) |
2.42 |
4.51 |
|
Operating Profit Margin (%) |
0.01 |
13.65 |
24.91 |
|
Profit Before Interest and Tax Margin (%) |
(6.04) |
8.08 |
19.38 |
|
Cash Profit Margin (%) |
(0.07) |
8.64 |
18.34 |
|
Adjusted Net Profit Margin (%) |
(6.12) |
3.07 |
12.80 |
|
Return on Capital Employed (%) |
(8.52) |
12.18 |
28.88 |
|
Return on Net Worth (%) |
(14.07) |
7.13 |
32.49 |
STOCK PRICES
|
Face Value |
Rs.5/- |
|
High |
Rs.(0.01) |
|
Low |
Rs.(0.01) |
LOCAL AGENCY FURTHER INFORMATION
History
Promoted by Sitaram
Singhania, (managing director of Lohia Machines), along with J P Shroff, (an
NRI businessman based in Singapore) Ester India is having a installed capacity
36000 tpa polyester chips, 18000 tpa polyester films and 6000 tpa dope-dyed
coarse denier polyester filament yarn. The total cost of the project was Rs.
844.000 Millions which was part-financed by a public issue in February 1988. It
was the first company in the country to have integrated operations to
manufacture three products polyester
chips, polyester film and dope-dyed polyester filament yarn. Its works is
situated in Khatima, Uttaranchal.
The Company is having two wholly owned foreign subsidiaries i.e Ester
International (USA) Limited and Ester Europe GmbH. The Company is also planning
to set up a one more subsidiary in Oman to manufacture 24000 MT of Polyster
Film.
EIL is considering various options, including private placement with FIIs, to
raise around Rs. 140.000 Millions to pay the overdue interest as per the
revival package.
The company's expansion-cum-modernisation programme with an investment of
Rs.1250.000 Millions for increasing the annual production capacities of Chips
from 20000 to 36000 MT and Polyester Film from 4000 to 18000 MT commenced
commercial production from 01.01.1998.
In 2001 the Company declared as a Sick Industrial Undertaking in October, 2001
and Rehabilation package was approved by BIFR for one time settlement of
Rs.552.040 Millions.
In 2004, the Company successfully completed the modernization of Chips Plant
and this modernization helps the Company to produce the chips at substantially
lower costs.
Operations
The sales including excise duty and other income during the year under review
are Rs.2912.547 Millions compared to Rs.2994.198 Millions in the previous year
resulting in decrease of 2.73%. The reduction in sales is due to reduction in
Yarn sales by Rs. 39.252 Millions and reduction in sales of Polyester Film by
2.76% in volume terms and by 5.16% in value. Polyester Film sales were also
affected adversely due to blockade of factory gates for few days during an
illegal strike by workmen towards the end of the financial year. However, the
production of Polyester Film was higher at 25524 MT as compared to 25127 MT
during 2003-2004. The capacity utilization remained higher than the installed
capacity at 142%.
The operational performance was adversely affected due to demand supply
imbalance resulting from substantial increase in installed capacities of
Polyester Film during the year. Further, there was substantial increase in the
prices of feed stocks namely PTA and MEG and also Fuel Oils consequent to
increase in the crude oil prices. The increase in feed stock prices could not
be passed on to customers.
Despite adverse market conditions, the Company could post Net Profit after Tax
(PAT) of Rs. 89.117 Millions. This was achieved primarily by penetrating new
export markets and by remaining focused on the cost reduction. Exports
accounted for 35% of the turnover during the year. Expense on Power and Fuel
was much lower than last year despite increase in Fuel cost on account of installation
of an efficient, cost effective Base Load generator that runs on cheaper fuel,
Furnace Oil. Modernization and upgradation of Chips plant in July 2004 has also
resulted in lower production costs. Interest and Other Financial Expenses
reduced from Rs. 127.781 Million to Rs. 9664.300 Millions during 2004-2005 on
account of repayments, lower utilization of limits and reduction in interest
rates.
The directors are pleased to report that despite imposition
of anti dumping and countervailing duties by Europe/USA, the Company has been
able to fulfill its entire export obligation under the EPCG scheme
Status of Deregistration From Sica
As the Rehabilitation Scheme approved by Hon'ble BIFR has been
fully implemented, OTS amounts have been paid in full ahead of schedule,
accumulated losses have been fully wiped out and Net Worth of the Company stood
at Rs. 1249.095 Millions (Rs. 1306.487 Millions as on 31.03.2005), the Company
has been deregistered from the purview of Sick Industrial Companies (Special
Provisions) Act, 1985 (SICA) by the Hon'ble BIFR vide its order dated
29.10.2004.
Modernisation and Project Schemes
The Directors of the Company have decided to install a state of the art 2450 mm
wide Metallizer of 4873 TPA capacity with a capital cost of Rs.145.000 Millions
at its existing factory site at Khatima. The Metallizer is expected to be
commissioned in September 2005. This will provide us a new product range with
higher value additions.
The Directors of the Company have decided to modernize its Film Plant Line # 1.
Modernization is expected to be completed during the quarter ended March 2006.
Upon completion of the modernization program, the plant will be able to produce
additional quantities of 1500 TPA of Polyester Film at marginal cost.
The Directors of the Company have also decided to build
capability to produce co-extruded Polyester Film. The project is expected to be
completed during the quarter ended March 2006. Upon successful installation of
Coextruder, Company will be able to produce high value added products resulting
into improved performance for the Company.
Personnel
During 19.01.2005 to 18.05.2005, the workmen of the Company in its factory at
Khatima resorted to an illegal strike on the issue of termination of few
workers engaged in physical assault on a Manager of the Company. Production,
sales and other activities remained more or less unaffected as the staff of the
Company did put in exemplary efforts in running the plant thereby ensuring
uninterrupted production. The strike was finally called off on
19.05.2005.
Management Discussion and Analysis
The Company has two businesses viz. PET Film and Engineering Plastics. PET Film
is the primary business accounting for 87% of the sales revenue. Production of
PET Film during the year under review was 25524 MT. Exports constitute
approximately 44% of PET Film volume and the balance is sold in the domestic
market. This business has seen sudden increase in the capacities worldwide and
that has impacted the margins from the third quarter of 2004-2005. A detailed
analysis of the market scenario is given in subsequent paragraphs. Engineering
Plastics accounts for 9% of the sales revenue. The market for this product
remains buoyant. (A) PET Film - Indian Demand Supply Scenario
The Indian demand supply balance is critical to the health of the industry as
it not only impacts the prices and margins in India but also in export markets
where Indian presence is significant.
Demand - India
The demand for PET film grew @ healthy 18% fuelled by a robust economic growth
in the country. The demand reached 110 KTA in 2004-2005. There is a strong
growth in packaging of food products including Sugar, Flour, Salt and cooked
foods. Similar growth is expected to continue this year as well. Exports of
converted products (Laminates) are also increasing with the improvement in
quality of converted products with their customers.
Metallised Film is a major constituent of the demand with good growth. This
segment is getting serviced by stand-alone Metallisers as well as film
manufacturers. During 2004, three Metallisers were commissioned and five are
expected in 2005-2006 including one by Ester.
Supply - India
The Indian PET Film Industry has been beset with high surplus over demand
during last many years, which had declined, from a high of 65% in 1997 to a low
of 28% in March 2004. This has led to large exports of the product from all
producers. The last two years had seen a balanced exports and domestic supplies
leading to healthy margins. The situation reversed during the year with
introduction of three lines in 2004 and one line getting commissioned in May
2005. This has created an additional supply of 90 KTA in a short span of one
year thereby increasing total capacity from 138 KTA in March 2004 to 228 KTA in
May 2005. The capacity utilization of Indian Industry is in the range of
100%.
The Indian industry has good export capability and will need to exploit it
further to have a balance in the domestic market.
Global Scenario
Demand - Global
The global demand for thin Film has been growing at 8% and is expected to grow
at same rate this year. The total demand touched 975 KTA. The major growth
areas are China, India with about 20% growth rate. Developed countries, viz.
US, EU, Japan are having a flat 2-3% growth. Other world has a small base, but
expected to grow @ 8% or above. There is a steady growth in demand for PET Film
with flexible packaging being globally preferred method of packaging as it is
an efficient user of resources. Packaging accounts for 60% of total PET Film
consumption.
Supply - Global
There is a sudden spurt of capacity additions across the globe after few years
of stability. About 275 KTA are being added during 2005. Major additions are in
China, India, Middle East and Turkey. Marginal capacity is likely to be added
in Europe, US and Japan conversion of Magnetic Media lines to thin Film lines
for Packaging and Industrial application.
Total Capacity is expected to touch 1500 KTA by end 2005 if all the announced
projects in China take shape and assuming no shutdowns of old lines. Asia (800
KTA) is emerging as the largest capacity center with 53% share of the total
capacity. Utilization rates in China are expected to be low in first two years
while Indian operating rates are expected to remain high.
There is surplus capacity available with supply exceeding the demand. There is
likely to be rationalization of lines in high cost regions and cost will become
a crucial factor for the growth and survival of manufacturers.
Outlook
PET Film business :-
The significant capacity additions in a short span of two years after a lull of
few years truly indicate the cyclic nature of this business. Most of the
capacity additions are in Asia including India, China, Middle East and Turkey.
These are markets with major presence of Indian producers. The healthy Indian
demand growth of 1520% may not be sufficient to balance demand/ supply to
ensure healthy margins. Larger exports from India are the solution. The Indian
players have good base for exports, but there could be pressure in the short
term particularly with the start-up of capacities in the Middle East and
Turkey.
The DEPB scheme is likely to be revamped and reduced further. All these could
impact export realizations during the year.
The oil prices are a continuous threat and their impact cannot be
predicted.
In effect, the PET Film industry is. likely to face challenging times. Ester
will try to maximize volume by managing the domestic and export portfolios
optimally. Their market knowledge and export customer relationships should help
us overcome this.
There is no impact of VAT in 2005-2006 as Uttaranchal has not introduced
VAT
The company’s fixed assets of important value include land (freehold),
buildings, plant and machinery, furniture and fixtures, office equipments and
vehicles.
As Per
Website Details
Profile:
Ester Industries Limited was incorporated in India in
1985. It is a widely held limited liability company. The main business
activities are production and marketing of versatile ranges of polyester films
and engineering plastics.
To
achieve its commitment to excellence the company lays emphasis on total
customer satisfaction, through continuous improvement in its overall
capabilities and on total employee involvement.
Its premium quality products are backed by inbuilt statistical and
analytical technique based processes and a strong research and development
oriented system. Continuous upgradation of technology, customer focused
marketing and technical services, are the company's other inherent strengths.
In its integrated manufacturing facilities Ester produces
polyester resins of various types, having different physical and chemical properties. These resins
are also captively used by Ester for manufacturing polyester films and
engineering plastics.
Ester produces UMAPet range of
Bi-axially Oriented Polyester Films on two state-of-the-art production lines.
UMAPet films have high tensile and dielectric strength, good chemical and
thermal stability and excellent optical and electrical properties as well as
processability at the users' end
The
entire process of film production, including slitting and packing is performed
in a dust free and clean environment. UMAPet is available in a wide variety
suitable for a number of applications.
With UMAPet you are always at an Advantage
Estoplast engineering plastics is a range of high
performance thermoplastic resins. This covers crystalline, amorphous and
specialty polymers like polyesters, polyamides, polycarbonates. Estoplast is
popular among their customers due to the suitable and consistent quality, wide
and effective distribution reach and prompt technical assistance. Ester caters
to specific applications and customer requirements. Estoplast is tailor made for
this purpose.
Estoplast
range of products is supported by a dynamic team, which provides assistance in
selection of the most suitable formulations for specific applications.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial Crime
:
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.15 |
|
UK Pound |
1 |
Rs.84.38 |
|
Euro |
1 |
Rs.57.22 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
1 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
38 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|